State Street and Galaxy Asset Management are planning to launch a tokenized liquidity fund in early 2026 that will use stablecoins to facilitate around-the-clock investor subscriptions and redemptions, broadening the use of public blockchains in institutional cash management.
The product, dubbed the State Street Galaxy Onchain Liquidity Sweep Fund, or SWEEP, will process inflows and outflows in Paxos-issued PYUSD, provided the fund has sufficient assets available. Access will be restricted to Qualified Purchasers that meet required thresholds. Ondo Finance has committed about $200 million to seed the fund.
The firms expect SWEEP to debut on the Solana blockchain, with plans to add Stellar and Ethereum at a later stage. Galaxy said it will use Chainlink’s cross-chain infrastructure to enable the movement of data and assets across networks.
According to the companies, the fund is aimed at institutions seeking exposure to cash-like assets onchain without sacrificing the liquidity characteristics typically offered by traditional sweep products.
Kim Hochfeld, global head of cash and digital assets at State Street, said the initiative underscores an evolving collaboration model between traditional financial institutions and crypto-native firms.
“By partnering with Galaxy, we’re advancing the transition of traditional finance onchain,” Hochfeld said.
Ondo Finance President Ian De Bode said the firm’s planned investment reflects the continued convergence of traditional capital markets and the onchain economy.
“Tokenization is increasingly serving as the connective tissue between traditional finance and blockchain-based markets, and SWEEP represents a meaningful step in that evolution,” he said.
The effort builds on the firms’ existing partnership, which includes digital-asset exchange-traded funds launched in 2024.
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